Pakistan's Per Capita Milk Consumption Reaches 231 Liters

Per capita milk consumption in Pakistan reached 231 liters (231 Kg) in 2019, according to a new research report entitled ‘Asia – Whole Fresh Milk – Market Analysis, Forecast, Size, Trends and Insights’. It has almost doubled from 119 liters per person in 2011. Milk production in Pakistan is the second highest in Asia and the third highest in the world.  Per capita milk consumption of 231 kg in Pakistan is the third highest in Asia, behind Uzbekistan's 339 Kg and Turkey's 281 Kg, according to the IndexBox report

Top Milk Producing Countries. Source: FAO

Milk Production:

Pakistan produced 47 million tons of milk in 2019, the third largest in the world after top-ranked India's 198 million tons and the United States' 100 million tons. Pakistan’s milk production is projected to increase by an average of 3% a year due to an increase in the herd population. According to FAO projections, Asian production is expected to increase by 2% in 2020 due to expected growth in India, Pakistan, and China, while Turkey may experience a decline.

In value terms, India ($146.8B) led the market, alone. The second position in the ranking was occupied by Pakistan ($37.3B). It was followed by China.

Milk Production Growth in Pakistan

Milk Consumption: 

Milk consumption in Pakistan in 2019 was 231 Kg per capita. It has grown an average of 3.2% a year in the last decade. From 2009 to 2019, the average annual rate of growth in terms of volume in India totaled +5.4%. The remaining consuming countries recorded the following average annual rates of consumption growth: Pakistan (+3.2% per year) and China (-1.2% per year).  

Pakistan Dairy Sector:

Vast majority of milk producers in Pakistan are small farmers who own a few cows or buffaloes and sell unprocessed milk. However, commercial scale dairy farming is starting to grow in the country.  Since the year 2000, corporate sector has seen the potential and jumped in with brand names like Dawood's Engro and Nestle's MilkPak.  This has led to the enlargement of herds with imports of high-quality milk germ plasm, the productivity per animal, milk collection, processing and marketing, the supply of dairy inputs (machinery, equipment, feeds, semen, and elite dairy animals), and farmers knowledge, and skills on modern management practices.   

The size of the opportunity for selling dairy products in Pakistan has attracted significant investments from European giants like Nestle, FrieslandCampina and Unilever. Commercial dairy farms like JK Dairy.  

Pakistan Agriculture Output: 

As of 2016, Pakistan's agriculture output is $52.5 billion, the 10th largest in the world in terms of gross value of agricultural production at current prices, according to Food and Agriculture Organization (FAO). China leads with $1.2 trillion in agricultural output, followed by India's $365 billion, United States with $329 billion, Brazil's $167 billion, Indonesia $135 billion, Japan's $91 billion, Russia's $69 billion, Turkey's $69 billion, France's $65 billion and Pakistan's $52 billion. 

Top 10 Countries by Agriculture Output. Source: FAO


Summary:

Pakistan is among the world's largest dairy producing and consuming nations. Pakistan produced 47 million tons of milk in 2019, the third largest in the world after top-ranked India's 198 million tons and the United States' 100 million tons. Per capita milk consumption in Pakistan reached 231 Kg in 2019. Pakistan’s milk production is projected to increase by an average of 3% a year due to an increase in the herd population. Vast majority of milk producers in Pakistan are small farmers who own a few cows or buffaloes and sell unprocessed milk. However, commercial scale dairy farming is starting to grow in the country. Overall, Pakistan's agriculture output is the 10th largest in the world.

Related Links:

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Chicken Cheaper Than Daal

Meat Industry in Pakistan

Bumper Crops and Soaring Tractor Sales in Pakistan

Meat and Dairy Revolution in Pakistan

Pakistanis Are Among the Most Carnivorous

Eid ul Azha: Multi-Billion Dollar Urban-to-Rural Transfer

Pakistan's Rural Economy

Pakistan Leads South Asia in Agriculture Value Addition

Median Incomes in India and Pakistan

Comments

Qaiser said…
Milk is very high in protein and vitamins. There is no excuse that we have such high levels of malnutrition in Pakistan when we have such high levels of milk production.
Anonymous said…
Start export dairy products and earn foreign exchange.
Riaz Haq said…
#Pakistan's #agriculture output is $52.5 billion, world's 10th largest . 1. #China: $1.2 trillion,2. #India's $365 billion, 3. #US's $329B, 4. Brazil's $167B, 5. #Indonesia $135B, 6. #Japan's $91B, 7. #Russia's $69B, 8. Turkey's $69B, 9. France's $65B.
https://knoema.com/atlas/topics/Agriculture/Value-of-Agricultural-Production-Gross-Production-Value-Current-Million-USdollar/Gross-value-of-agricultural-production

https://twitter.com/haqsmusings/status/1319702261635764224?s=20

-------------

As of 2016, Pakistan's agriculture output is $52.5 billion the 10th largest in the world in terms of gross value of agricultural production at current prices, according to Food and Agriculture Organization (FAO).

https://knoema.com/atlas/topics/Agriculture/Value-of-Agricultural-Production-Gross-Production-Value-Current-Million-USdollar/Gross-value-of-agricultural-production

China leads with $1.2 trillion in agricultural output, followed by India's $365 billion, United States with $329 billion, Brazil's $167 billion, Indonesia $135 billion, Japan's $91 billion, Russia's $69 billion, Turkey's $69 billion, France's $65 billion and Pakistan's $52 billion.
Riaz Haq said…
Pakistan produced in 2018:

67.1 million tons of sugarcane/ 5 million tons of sugar (5th largest producer in the world, behind Brazil, India, China and Thailand);
25.0 million tons of wheat (7th largest producer in the world);
10.8 million tons of rice (10th largest producer in the world);
6.3 million tons of maize (20th largest producer in the world);
4.8 million tons of cotton (5th largest producer in the world);
4.6 million tonnes of potato (18th largest producer in the world);
2.3 million tonnes of mango (including mangosteen and guava) (5th largest producer in the world, only behind India, China, Thailand and Indonesia);
2.1 million tons of onion (6th largest producer in the world);
1.6 million tons of orange (12th largest producer in the world);
593 thousand tons of tangerine;
550 thousand tons of tomatoes;
545 thousand tons of apple;
540 thousand tons of watermelon;
501 thousand tons of carrot;
471 thousand tons of date (6th largest producer in the world);
Riaz Haq said…
#Pakistan develops two new varieties of #banana. These high-yielding varieties will have more shelf life, a basic requirement for #export. Banana is cultivated over an area of 80,000 acres in Pakistan but per acre yields are low- Profit by Pakistan Today https://profit.pakistantoday.com.pk/2020/11/19/pakistan-develops-two-new-varieties-of-banana/#.X8vShA7wZdA.twitter

Pakistan has achieved a breakthrough in banana production, as the country’s apex agricultural research institution has developed two varieties of the fruit for cultivation in Sindh.

“The new varieties — NIGAB-1 and NIGAB-2 — will boost banana production in the country, which will further help in meeting domestic requirements as well as export targets,” said Pakistan Agricultural Research Council (PARC) Chairman Dr Muhammad Azeem Khan. He lauded the scientists involved in the development of NIGAB varieties.

According to details, the new varieties of banana were developed at the National Institute for Genomic and Advanced Biotechnology (NIGAB) of the National Agricultural Research Centre, where 300,000 disease-free plants have so far been produced through tissue culture.

These high-yielding varieties will have more shelf life, a basic requirement for export.

The two varieties have been approved by the Sindh Seed Council for commercial cultivation in the province, which is the largest grower of the fruit in the country.

Statistics showed that banana is cultivated over an area of 80,000 acres in Pakistan. However, according to the Food and Agriculture Organization (FAO) of the United Nations, per-acre yield in Pakistan is lower when compared to India and China, which produce more than ten tonnes per acre.

Bananas are the world’s most exported fresh fruit with the volume of $10 billion per year. They are an essential source of income for thousands of rural households in developing countries. However, agrochemical-intensive production along with declining producer prices has given rise to many environmental and social challenges.

As per the FAO, global production of bananas and tropical fruits is projected to grow at 1.8pc per year between 2019 and 2028, after registering 2.3pc per year growth in the previous decade. Under the baseline scenario, production is expected to slightly exceed 255 million tonnes by 2028.
Riaz Haq said…
Dysfunctional Horticulture Value Chains and
the Need for Modern Marketing Infrastructure:
The Case of Pakistan

https://www.adb.org/sites/default/files/publication/534716/dysfunctional-horticulture-value-chains-pakistan.pdf

Total cereal production in the country increased to 38.34 million
MT in 2016 from 25.99 million MT in 2001, registering a growth of
47.52%. More than 70% of this growth was contributed by growth
in yield, while the rest was contributed by growth in cultivated land.
The country produced 6.64 MT vegetables and 5.89 MT of fruits in
2001, which increased to 9.77 MT and 6.8 MT, respectively, in 2015.
Yields of fruits and vegetables remain low. For example, yield
of potato (in tons per hectare) in Pakistan is significantly lower
compared to European countries like Belgium, the Netherlands,
Spain, and Turkey; and the United States (US) (Figure 2). Overall,
growth of yield played a small role in the growth of production of
fruits of vegetables during 1990–2016.3
Total production of potato, onion, and tomato was about 6.23 MT
in 2015, which accounted for about 64% of quantity and about 70%
of value of all vegetables produced in Pakistan. Punjab, Sindh, Khyber
Pakhtunkhwa, and Balochistan provinces accounted for 83%, 1%,
9%, and 7%, respectively, of total potato production. Shares of these
provinces in total tomato production were 9%, 10%, 45%, and 26%,
respectively. Sindh (40%) and Balochistan (28%) led in total onion
production, followed by Punjab (21%) and Khyber Pakhtunkhwa (11%).
Pakistan exports different types of fruits and vegetables. The value
of the country’s export of fruits and vegetables in 2016–2017 was
about $568 million. Per capita consumption of fruits and vegetables
in Pakistan is low compared to Europe and America, and roughly at
par with South Asian comparators like Afghanistan and Bangladesh.
In 2013, per capita consumption of fruits was only about 29
kilograms (kg) in Pakistan compared to 95 kg in Europe and 105 kg in
the US. Per capita consumption of vegetables was 26 kg in Pakistan
compared to 115 kg in the European Union and 114 kg in the US in
the same year.4
Current Horticulture Value Chain
Several players are involved in different segments of the horticulture
value chain in Pakistan.

Collection and Shipment
Majority of the farmers sell their produce at wholesale markets. Most
farmers contract out fruit orchards during the flowering stage to the
middlemen, commission agent, and/or wholesalers who provide
loans to the farmers over the course of production. Vegetables and
fruits are transported by the same cart or truck from farms to the main
markets in the absence of specialized vehicles for specific products.
The same vehicle is used for many other purposes including animal
transportation. Recently however, reefer trucks have been introduced
on a limited scale in some parts of Pakistan. In the absence of direct
access of carrier vehicles to the farms, farmers gather their products
in a convenient spot along the roadside for pickup. When middlemen
or contractors are involved, it is their responsibility to collect and
transport the produce. The unsold or unauctioned produce in one
market is sent to other markets in the same locality.
Fruits and vegetables are packaged using local materials before
shipment. In most cases such packaging fails to preserve the
freshness and quality of the products. Another problem is absence of
cooling and packaging centers, and inadequate cold storage facilities
to preserve the produce at or near the wholesale markets. More than
555 cold storage units have been identified in Pakistan with about
0.9 million MT storage capacity, against more than 15 million MT of
production of fruits and vegetables. There are no available cooling
and packaging houses, and cold storage facilities close to the farms
that can be used by the producers.
Riaz Haq said…
Dysfunctional Horticulture Value Chains and
the Need for Modern Marketing Infrastructure:
The Case of Pakistan

https://www.adb.org/sites/default/files/publication/534716/dysfunctional-horticulture-value-chains-pakistan.pdf

Negative Impacts of the Current Value Chain The negative impacts of the current value chain can be assessed in terms of the low share of farmers in consumer prices . Usually producers get 15% to 20% of the retail price. Production of perishables like potato, onion and tomato suffers from a major setback every 3–4 years. Usually two or three good harvests are followed by a bad harvest. Besides, natural factors like unfavorable weather also negatively affect production. Producers do not get price dividends when production is low, shooting the retail price. Benefits of high retail prices are disproportionately expropriated by the middlemen. When there is a market glut where perishables and their prices fall, producers suffer as their share in retail prices also falls significantly. Sometimes producers throw away their perishable produce to protest their low prices. It emerged from discussions with the traders in Badami Bagh Ravi Link wholesale market that producers’ share in retail prices is inversely related with the perishability of the crop. Both seasonal and spatial price fluctuations of fruits and vegetables are high in Pakistan. For instance, in 2017, the price of 100 kg of tomato in Lahore fluctuated between 1,450 Pakistan rupees (PRs) to PRs13,150, or more than 800%. In the same year, price fluctuation for fresh potato was between PRs1,550 to PRs4,300 for 100 kg, or 177%. The annual cost of price fluctuations of fruits and vegetables is estimated to be about $825 million. Postharvest losses in fruits and vegetables due to mishandling of the perishable product, poor transportation, and inadequate storage facilities and market infrastructure account for about 30%–40% of total production. The annual value of postharvest losses of potato, tomato, peas, cauliflowers, carrots, turnip, radish, brinjal, squash, okra, onion, grapes, and mango in Balochistan, Khyber Pakhtunkhwa, Punjab, and Sindh, valued at the respective 2016 provincial wholesale prices, is about $700 million to $934 million. An alternative estimate suggests that a reduction of around 75% of the current postharvest loss, when valued at export premium prices, would be equivalent to an annual saving of approximately $1.13 billion.



Due to low economies of scale, lack of synergies and collaboration among traders, high loading and unloading time, and hightransportation cost, overall marketing cost is very high. A reduction of marketing cost by $0.025 per kilogram would save about $55 million annually in the Ravi Link wholesale market in Lahore. It is difficult to comply with food safety, sanitary, and phytosanitary standards with the current value chain. The income and corporate tax revenues foregone due to the current value chain and marketing structure are also potentially high. Current Situation of the Main Wholesale Markets in Lahore The situation of four wholesale markets located in Lahore were analyzed, namely, (i) Badami Bagh Ravi Link, (ii) Akbari Mandi, (iii) a fish market at Urdu bazaar, and (iv) a flower market in Sughian Pul Shekhopura Road. The key findings are as follows. Physical Limitations The main problem is inadequate space for activities, forcing the commission agents and wholesalers to operate in open spaces with consequent spoilage. The average size of stalls is about 16 square meters only, which makes sorting, grading, and display of products difficult. Most of the corridors and offices in the premises have little active ventilation as required by international standards.
Riaz Haq said…
Speaking at a Karachi Chamber of Commerce and Industry webinar in December, Adviser to the Prime Minister on Institutional Reforms Dr Ishrat Husain stressed the importance of looking beyond the textile sector and diversifying Pakistan’s exports. Otherwise, he warned, we will remain “stuck” at 25 to 30 billion dollars in exports per year.

https://www.dawn.com/news/1611075

“If we can capture just one percent of the Chinese market by providing components, raw materials [and] intermediate goods to the Chinese supply chain,” he had said, “we can get 23 billion dollars in exports to China, which is very favourably inclined towards Pakistan...”

From the looks of it, others were on the same page as Husain. Last month, it was reported by China Economic Net (CEN) that China will import dairy products from Pakistan. The Commercial Counsellor at the Pakistan Embassy in Beijing, Badar uz Zaman, told CEN that Pakistan got this opportunity due to its high quality dairy products, available at a low price.

Pakistan is the fourth largest milk producer globally, Zaman pointed out.

Indeed, the country’s dairy industry has great potential and can prove to be ‘white gold’ for Pakistan. Unfortunately, the sector is currently struggling due to various reasons but, if its export potential is realised, it can transform not only the sector itself but Pakistan’s economy as well.

According to the Food and Agriculture Organisation at the United Nations, in the last three decades, global milk production has increased by more than 59 percent, from 530 million tonnes in 1998 to 843 million tonnes in 2018.

This rise in global milk consumption is an opportunity for countries such as Pakistan to earn foreign exchange by exporting milk and dairy products to countries which have insufficient milk production. According to a Pakistan Dairy Association estimate, with support from the government, Pakistan can earn up to 30 billion dollars from exports of only dairy products and milk.

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